In series of DTV technical decisions, FCC affirmed 8-VSB modulation, started rulemaking on requiring TV sets to have DTV tuner and took several other actions. FCC Chmn. Kennard said decisions would give broadcasters “the clarity and flexibility… to accelerate the buildout of their DTV operations.” He said he was pleased DTV tests “put… to rest” debate over modulation standard. Comr. Ness said FCC actions removed transition uncertainty and it was “time for all industries involved in the digital broadcast food chain to come together and redouble their efforts to achieve a speedy transition.”
Scientific-Atlanta (S-A) said its net earnings more than doubled to $70.8 million in 2nd quarter ended Dec. 29 as bookings rose 52% to $707.3 million and sales climbed 69% to $631.4 million, driven largely by equipment maker’s broadband business. S-A, which announced big gains in subscriber bookings and smaller gains in transmission bookings over previous 2nd quarter, said it shipped 1.11 million Explorer digital cable set-top boxes in 2nd quarter, up from 1.03 million in first quarter, and received orders for more than 1.5 million boxes. Company said backlog at end of quarter exceeded 2.1 million units. S-A, which now has shipped nearly 5 million Explorer set-tops, also announced plans to boost production capacity to 1.5 million boxes per quarter by end of March.
Steve Wexler promoted to vp-gen. mgr., Journal Bcst. Group- Omaha Operations… John Damiano advanced to exec. vp-affiliate relations, NBC… Promotions at Belo: David Muscari to vp- strategic alliances, WFAA-TV Dallas/Ft. Worth; Lawrence Nicholson to vp-mktg., WFAA-TV; Mike Devlin to vp-news KHOU-TV Houston; Jay Cascio to vp-programming & creative services, KING-TV Seattle; Deborah Wilson to vp-sales & mktg., KING-TV… Yolanda Macias, vp of DirecTV Para Todos and International Services, DirecTV, joins board, T. Howard Foundation… Promotions at AOL: Ray Oglethorpe to pres.-America Online; Jan Brandt to vice chmn.-chief mktg. officer; Ted Leonsis to vice chmn.-new product officer; Jonathan Sacks to pres.-AOL Service; Audrey Weil to pres.-CompuServe; Donn Davis to pres.-Interactive Properties Group; Myer Berlow to pres.-Worldwide Interactive Mktg.; Mark Stavish to exec. vp-human resources; Randall Boe to senior vp-gen. counsel… Gary Rautenstrauch promoted to pres., Baker & Taylor… Among appointees to National Infrastructure Assurance Council: Harris Miller, Information Technology Assn. of America; Bill Gates, Microsoft; James Chandler, National Intellectual Property Law Institute; Charles Stuckey, RSA Security… Changes at Cox Communications: Patrick Esser promoted to exec. vp-operations, succeeding Maggie Bellville, resigning Feb. 2… Gerry Anderson, gen. mgr., Mid-Rivers Telephone Co-op, reelected chmn., National Exchange Carrier Assn.’s NECA Services unit.
Lucent plans to seek buyers for 2 of its 4 U.S. factories in next 6 months to cut costs. Company said it planned to contract out manufacturing in Oklahoma City and Columbus, O., which together have 8,400 employees. Lucent is in midst of major cost- cutting effort that began last year.
Paxson Communications urged broadcasters Fri. to oppose Verizon Communications request that FCC postpone upcoming 700 MHz auction at least 2 months, but ideally until Sept. 6. Auction, which had been set for last Sept. 6, now is scheduled for March 6, with short-form applications due Feb. 2. FCC Wireless Bureau is seeking comments on request until Jan. 24, after Verizon Wireless wrote to Bureau Chief Thomas Sugrue, arguing that if auction were held as scheduled, participants wouldn’t have enough time to assess their interest in acquiring additional spectrum, in part because C-block PCS auction that started Dec. 12 was continuing (CD Jan 19 p9). Paxson urged broadcasters, particularly incumbents in Ch. 60-69 spectrum, to oppose request for delay, noting that bidding already had been delayed 3 times. “We cannot support a 4th delay of the 700 MHz auction,” Chmn. Lowell Paxson said. “This most recent action by Verizon will put the continuation of the information revolution in the U.S. in grave jeopardy.”
SAN JOSE, Cal. -- Standards for broadband wireless access (BWA) are necessary but shouldn’t delay “time to market” for new developments in BWA technology, said Sheldon Fisher, asst. vp- architecture and technology for Sprint’s Broadband Wireless Group in Wireless Communication Assn. (WCA) keynote here Fri. Industry “can’t wait” for standards process that takes 12-18 months, Fisher said, and such delays will impede innovation. Standards don’t “destroy innovation,” said WCA Task Force on Standards Chmn. Gary Smith of WorldCom, but standards process should be sensitive to industry’s rapidly developing new technologies.
Independent Cable & Telecom Assn. changed its name to Independent Multi-Family Communications Council (IMCC) and elected new 31-member board. Group, which represents private cable operators, multifamily dwelling unit (MDU) owners and product manufacturers and vendors, said it made switch to focus more on “improved products and services for multifamily community residents” and MDU owners. IMCC said it would continue pushing for repeal of cable mandatory access laws in states and elimination of “barriers to competition” at FCC.
Bill introduced in N.J. Assembly effectively would prohibit Verizon from seeking deregulation of retail or wholesale rates and services until its local market share fell below 50%. Measure declares that Verizon’s loss of half its current market share would be proof that effective local competition existed in state. At that point, company would be allowed to seek rate and service deregulation. Legislation (AB-3122/S-1522) would act by tying variety of regulatory requirements to market share test, including requirement for cost-based Verizon rates for unbundled network elements and carrier access, performance standards for wholesale services to CLECs, mandatory service quality standards, caps on retail basic service rates. Bill also would require full 3rd party testing of Verizon operation support systems and 90-day monitored commercial operation study as soon as practical, new service performance standards for all local exchange providers within 9 months of enactment, review of state’s service quality standards within 12 months of enactment. Bill would establish state universal service fund for high-cost areas. Another new Assembly bill (A-3103) would allow Board of Public Utilities to suspend payment of dividend distributions by any operating unit of an energy or telecom utility if board found company was providing inadequate service or was guilty of other major rule violations. Measure would allow company to place dividend payments in escrow pending finding that it had remedied problem. Bill is similar to Ohio law that state regulators last year used against Ameritech because of company’s inadequate service. Both N.J. bills are before Assembly’s Telecom & Utilities Committee.
Bidding in FCC’s C- and F-block PCS auction continued to edge up in small increments Fri., with total hitting $16.8 billion. Bids for top 3 participants were little changed, with Verizon Wireless at $8.9 billion, AT&T-backed Alaska Native Wireless $2.8 billion and Cingular Wireless-backed Salmon PCS $2.4 billion. DCC PCS had $539.4 million, followed by Cook Inlet/VoiceStream GSM with $510.4 million, VoiceStream PCS with $479.4 million, and Leap Wireless with $342.3 million. Competition appeared to have cooled somewhat for N.Y.C. licenses, whose highest bids have remained unchanged for last several rounds. Verizon has top bids of $2.05 billion and $2.03 billion for 2 licenses in that market, with Alaska Native Wireless bidding $1.5 billion for 3rd. Verizon also has top bids for licenses in L.A. and Chicago, at much lower price levels of $513.5 million and $494.6 million, respectively. Auction for 422 licenses began Dec. 12 and has gone 73 rounds, with FCC stepping up bidding last week to 6 rounds daily from 4 to accelerate pace. Among 15 most populous markets, Verizon Wireless has high bids for 9 licenses, Alaska Native Wireless for 2, Salmon PCS for 3 and DCC PCS for one in Washington.
Women in Cable & Telecom (WICT) expressed concern about FCC’s recent report showing that women held fewer jobs in cable industry than year ago (CD Jan 18 p10). Of 2,752 overall jobs lost in cable 1998-1999, group said women lost “a startling 2,025, or 74%.” WICT called it “even more troubling” that women made up “just 34.4% of officials and managers for cable operators” in 1999, down from 35.2% in 1998 and 36% in 1997. Group warned again that if trend continued, “it would begin to cripple” cable industry as it competed with other industries for top talent. It urged cable operators to “make the fundamental changes that will address these employment issues” and provide women with more female role models, more opportunities for advancement and greater recognition of company contributions.